WaFd Bank Posts Strong Q3 Earnings, Continues to Reap Rewards from Strategic Loan Originations and Capital Management Efforts
WaFd Bank has reported a solid third quarter, with net income available to common shareholders coming in at $62.5 million or $0.84 per diluted share for the quarter ended June 30, 2026.
This represents an increase of $0.02 compared to the same period last year and $0.01 less than the March quarter, according to Kelli Holz, Chief Financial Officer, during a recent conference call with investors. The company's earnings per share beat analyst expectations, driven by a modest increase in net interest income and non-interest income, as well as controlled expenses.
The bank also saw a significant uptick in loan originations, with $1.5 billion in new loans being originated during the quarter. This outpaced repayments and payoffs, which came in at $1 billion for the active loan types. The weighted average rate on originations was 6.31% for the quarter, while the weighted average rate on repayments and payoffs was 6.06%. Total investments and mortgage-backed securities decreased by $50 million during the quarter due to a shift towards higher-yielding loans.
One notable aspect of WaFd's strategy is its focus on originating loans in high-growth areas, such as commercial real estate, multifamily, construction, land acquisition and development (A&D), C&I, and consumer lending. These loan types combined increased by $315 million during the quarter, with active loan originations outpacing repayments.
While loan loss provisions did increase slightly, WaFd's strong capital profile remains a key differentiator for the bank. The company estimates its Common Equity Tier 1 (CET1) ratio to be 11% at quarter-end, leaving plenty of room for future growth and expansion.
The conference call also highlighted the importance of core deposits in driving WaFd's business forward. Non-interest-bearing deposits increased by $69 million or 2.7%, while interest-bearing deposits decreased slightly by $70 million or just under 1%. Time deposits decreased by $191 million or 2.3%, but core deposits remained stable at 80.6% of total deposits.
The bank's loan-to-deposit ratio ended the quarter at a healthy 95.6%, indicating that WaFd is well-positioned to continue lending and growing its portfolio in the coming quarters.
Overall, WaFd Bank's Q3 results demonstrate a continued commitment to strategic loan originations and capital management efforts. The company's strong capital profile and focus on high-growth areas position it well for future success and growth.
